Financing agreement for expansion of Oyu Tolgoi signed

2015-12-17 11:41:14

The signing ceremony on financing of $4.4 billion worth project for underground mine development at the Oyu Tolgoi copper mine was held at Shangri-La Hotel in Ulaanbaatar on Wednesday.

The finance facility for the one of the largest projects in the world’s mining industry will be provided by a syndicate of international financial institutions and export credit agencies representing the governments of Canada, the United States of Americ and Australia, along with 15 commercial banks.

Rio Tinto Copper and Coal chief executive Jean-Sébastien Jacques said that this Project Finance agreement is the next important step towards further development of the world class Oyu Tolgoi mine in Mongolia. More than 80 per cent of the value of Oyu Tolgoi deposit lies in the underground mine.

Once an agreement has been reached and signed, the construction work to dig more than 200km of tunnels to access ores at the deposit will take five to seven years and is expected to start within the first half of 2016. The work will create 3000 jobs.

The Chairman of Board of Directors of Oyu Tolgoi company Mr  Batsukh said that Oyu Tolgoi mine is estimated to cover one third of Mongolia’s Gross Domestic Product by accumulating 1.2 billion USD to the State Budget each year.